How to Make Money from Bread Bakery and Distribution Business

Bread bakery business is one of the most lucrative businesses in the world due to its high demand. Bread, according to researchers, is the third most admired food staple in most part of the globe. 

Bread is widely consumed across continents by almost all ethnic groups, religions and races.  Everybody likes eating bread maybe as a result of its scent or taste. Also, bread is one of the cheapest and most accessible foods one can lay hand on at any time of hunger. Yes, with this background and more research conducted, I will conclude starting a bread baking business anywhere at any location in the world can be a very lucrative and viable business. 

Photo Credit:  Jarkko Laine

Read This Amazing Stat

I always stress this fact; the best business to do should be the one that have products or services that are highly sort after. The products or services should be in high demand in the market. You will agree with me that bread is one of such product. Research has shown that about 12 million loaves of bread is supplied in Lagos on daily basis. Also, 58 Pounds of of bread are consumed in the US every year. I also discovered that over 15 million loaves of bread are needed to supply the entire world for just a week  

Are you still puzzling on what business to invest? I strongly recommend bread bakery business for you especially if you have the capital to invest. A friend of mine who is a bread supplier in Abuja told me he is making serious profit from this business. Bread makers do also makes remarkable profits in this business. Bread bakery business is better compared to any other average business you can do.  

  

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What Do You Need to Start Bread Bakery Factory?

Starting a bread bakery factory is not cumbersome at all especially if you have the investment capital to construct a factory that meets your federal or state authority’s regulations. In this article, I will explain in simple terms how you can start and make money from bread bakery factory. Let’s see the market analysis which is profit potential of this business.

Profit Potentials in Bread Bakery Business

In most cities in Nigeria, the current cost of producing a standard loaves of bread  (slice or unsliced) is about =N=70.00. 

The factory price for each standard loaf of bread is about =N=140. This is the amount given to bread suppliers. At this level of the business, the supplier makes as much as =N=50 per bread.

The suppliers then supplies the retailers at the rate of =N=170 to =N=180. They also make as much as =N=50 per loaf of bread.

The retailers being the last line in this distribution sell each loaf of bread between =N=230 to =N=250 and make as much =N=50 per loaf of bread as gain.


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If you observe from this market analysis, each party that is involved in the trend from production to the final level in supply chain have at least =N=50 as gain per loaf of bread.   

Now let’s look at Profit base in bulk production;

A standard bread bakery with first-class supply network can produce and distribute as much as 100,000 loaves of bread every week on average. If you apply a little arithmetic, with an average gain of =N=50 per loaf of bread, what you get as profit for the week in producing and supplying this said quantity is =N=5,000,000. This amount excludes the cost of production. So you just need to minus out the business cost and logistics to arrive at your final profit.  


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See the estimate of the running cost in bread factory below;

1.  Cost of gas for generators per week = =N=60,000

2.  Amount use for workers’ salary and remunerations per week = =N=200,000

3.  Cost of running and maintained supply vehicles per week = =N=100,000

4.  Miscellaneous and logistics per week = =N=50,000  

This makes up =N=410,000 per week as expenses leaving you with =N=4,590,000 as profit that that week. With this simple analysis, you can see how bread bakery business can make you rich. Entrepreneurs have considered this business as one of the most lucrative business in its category.

For others is the line of supply, the much you can make depends on the much you can supply. In general terms, nobody looses out in this business.

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